Guide to what is a Contra Account. Here we explain its examples, lists, debit or credit, importance, and compare it with adjunct account.

Aug 22, 2023 · In this article, we’re going on a deep dive into what exactly a contra account is, how contra accounts work, why and how you would use contra accounts and more.

Oct 7, 2025 · There are four main types of contra accounts: contra asset, contra liability, contra equity, and contra revenue. Each plays a different role in reducing or offsetting balances so financial …

Examples of contra accounts include allowance for doubtful accounts, reserve for obsolete inventory, and accrued liabilities. Contra asset accounts are fascinating enigmas in accounting—they hold a …

Aug 4, 2025 · Here are some of the most common contra-asset accounts: Accumulated depreciation: This contra account represents the total depreciation to date of a fixed asset, such as a building or …

For instance, if a company has a plant asset such as Equipment with a debit balance of $92,000 and the account Accumulated Depreciation has a credit balance of $50,000, the carrying amount (or book …

In accounting, contra accounts are a specific type of account used to offset or reduce the balance of another related account. They are paired with corresponding accounts to provide a clearer picture of …

Learn what a contra account is, see real-world examples, and discover why contra accounting gives business owners clearer financial insights.

Contra asset accounts allow users to see how much of an asset was written off, its remaining useful life, and the value of the asset. Some of the most common contra assets include accumulated …

Oct 22, 2024 · There are several types of contra accounts, including accumulated depreciation, allowance for doubtful accounts, and sales returns and allowances. Each type of contra account …